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ABC healthcare give facilities for ambulatory surgery, outpatient clinics, hospitals, and also urgent care centers. Maria Gomez is acting as the founder as well as the president of the healthcare facility. All above-mentioned facilities are treated as a single entity in the finance department. All the data of financials of the firm are treated in their own financial statements, and after that, this financial statement helps in preparing a consolidated account in the future. The revenue of the firm is mostly generated from the general public, which relates to its business. ABC Healthcare is one of the leading healthcare service providers in the country when it comes to providing home medical equipment. The organization specializes in rehabilitation, medical, and respiratory treatments, and it serves a large number of individuals. As recorded in the annual report of 2019, financial ratios show that investors were ready to pay $12 for the return of $1 on this investment. When compared to the financial year 2019, the price-to-profits ratio was lower than in previous years. As below, it is clearly mentioned that there has been no change in the market price of the shares of the company in the last three years; however, the profit per share declined in the last three years. If we talk about the price/earnings ratio, it shows an increasing trend over the last three years. A positive trend in the financial ratio shows that investors are happy and want to purchase more additional shares in the company. They are happy to obtain more operations in the company and want to spend excess control.

Company Background

The healthcare company ABC Healthcare Corporation is a market leader. Elwood James Miller, a respiratory therapist, established the ABC healthcare business organization in 1983. Elwood began his healthcare business in his carport and grew it into a reputable provider of services, reliability, and compassion. The ABC healthcare organization is now Virginia's biggest accredited supplier of clinical respiratory treatments as well as personal medical equipment. This is true throughout the sector, and ABC Healthcare Corporation works hard to fulfill the demands of its patients, workers, as well as insurance partners. The company is a public limited in the healthcare industry, and it is listed on the stock exchange. There are 2000 total employees in the company hired in it. Casual employees are part of this number of employees with 20% of the total workers. As written in the annual report, when we see the financial data for the last five years, we can clearly see that it indicates that the company management put its efforts into boosting the profit of the company. Its revenue increase year by year. In addition, the financial part shows the increasing trend in the wealth of stakeholders. In the healthcare sector, Healthcare Corporation is a market leader. ABC health care provides facilities related to ambulatory surgery, hospital, urgent health care, and also the outpatient clinic. There are a lot of medical intuitions which related to the company and provide healthcare services to the customers. There is various type of services for the customers because the company considers the customers as the most important stakeholders of it.

This is true throughout the sector, and ABC Healthcare Corporation works hard to fulfill the demands of its patients, workers, and insurance partners. The overall goal and motive of this report are not only to examine the company's financial situation but also to give suggestions for maximizing shareholder value. In the case of ABC Healthcare Corporation, this will have an impact not just on direct investors but also on the company's patients. The financial data related to the CFO of the company will be under consideration for determining the economic history of the company. Three suggestions will be made once this data has been analyzed to optimize shareholder value.

To address the decreases in earnings per share, one could look at the ever-increasing prices of healthcare. Healthcare has been identified as quite expensive and financially unreachable for most of the global population. This increase in healthcare prices means that there are fewer returns for the shareholders as the organization experiences more expenses. Secondly, healthcare has become highly regulated by governments so as to make it accessible (Michael & Richardson, 2008). This means that healthcare organizations such as ABC can not constantly increase the prices of their services. This also affects the amount of profit that ABC can make, ultimately affecting the returns for each shareholder.

Financial Ratio Analysis

Ratio analysis is critical for a company's financial situation, liquidity, profitability, risk, solvency, efficiency, operational effectiveness, and lastly, the correct use of money. (AREAS, 2018)It also reveals the overall comparison as well as the trend of financial outcomes, which are very significant for the shareholders to make the appropriate investment decisions as the financials of the company show that the market price of the company has been the same for the last three years, which is 83.62 dollars. This consistency in the market price shows that investors of the company maintain the profitability of the shares within the market. There are the demand and supply forces here which indicate that when demand increase, then the price of the products also increases, which in result decline in the supply and vice versa.

Equilibrium is defined as the value of a company's share being constant throughout time. Stock details of the company show that when the public purchases the shares of the company in bulk, then it increases the net worth of the company. This is all due to giving the extra incentives to its shareholders that they can pay the same cost for the added amount of shares. Inflation plays a major role in decreasing the stock's share price, as the company's share price is 83.62 today, but it doesn't mean it will be the same in the future. The book ratio of the business has jumped in the last three years. The price at which the stock trade in the market is the market price, and these stocks are recorded in the financial statement at par value. (Pride et al., 2020) The par value of the stocks is usually less than its market price. (Pride et al., 2020) As we can see, the book value of the shares increased over the last three years, and it shows an increasing trend. As a result of changes in the company's net assets and ownership, this has occurred. When we divide the net assets of the company by its outstanding shares, then we get the book value of the share. When the book value per share rises, it signifies the company's net assets have grown at a faster rate than the shareholding. (Tracy, 2012) This is a good sign that the firm can create more income without relying on shareholder funds to invest in more assets. The reason behind the increases in PE and PB but a decrease in EPS can be linked to the technological advancements in the health care sector. ABC has probably acquired the latest machinery and medications. This has ultimately increased the net assets, positively affecting the worth of the organization (Jorion, 1991). However, the earnings per share may be declining as a result of these technological advancements. Profit is going into ensuring the organization is relevant and has the best equipment but reducing the earnings of the shareholders.

Lastly, the Book Value Per Share will be analyzed. It is evident that between 2017 and 2019, it has decreased to a total value of 26.9. Although the decrease is quite noticeable, it is not entirely concerning as it is likely a result of ABC increasing its profitability and growth through the acquisition of new technology (Jorion, 1991).

Trend analysis is a sort of basic analysis approach that aims to forecast future stock price movements by utilizing the trend data that has recently been seen. (Thomsett, 2019) In order to evaluate the long-term direction of market sentiment, trend analysis in this regard by looking at the past data, which includes price fluctuations as well as transaction volume. (Thomsett, 2019). Trend analysis seeks to forecast a trend, such as a stock market run, and ride it until evidence shows a loss of momentum, including a bull-to-bear market. Trend analysis is considered very useful because it provides the real aspects of the trend to investors, and the investor will therefore earn on investment by following rather than fighting them. It is founded on the assumption that the investors can better anticipate the future prospects of the future happenings by examining what has actually occurred. (Gil-Lafuente, 2005)Short-term, intermediate-term, as well as long-term trends are really the three main categories. The increasing trend in the book value of the shares reveals that the company's shares have a growth rate in fast position than its shareholder's value. A company's management can earn more without relay on the shareholders. Management can earn profit by efficient operations as the financials shows that the market to book price increased from the past 3 years to now because the market price has considered the market value. The company gives incentives to its public shareholders and expands its net worth of the company.

PEG ANALYSIS FOR THE YEARS 2019AND 2018

ABC

Price per share : $83.62

EPS this year : $1

EPS last year : $1

HCA

Price per share : $199.34

EPS this year : $21.16

EPS last year : $21.18

Given this information,

ABC

P/E ratio :83.62/ 1= 83.62

Earnings growth rate : 1/1 = 1%

PEG ratio : 83.62/ 1 = 1:83.62

HCA

P/E ratio : 199.34/ 21.16 = 9.42

Earnings growth rate : 21.16/21.18 = 0.99

PEG ratio : 9.42/0.99= 9.51

Recommendations

Different steps can be used to achieve higher shareholder value. Firstly, ABC is encouraged to increase its stock market price. Increasing the stock market price gives the impression that the organization is of high value and is a worthy investment. It also brings about a sense of confidence in the financial standing of the organization (Blyth, Friskey & Rappaport, 1986). When the stock market price heightens, the shareholders get more return as a result of increased prices as the EPS also increases.

Secondly, ABC is encouraged to ensure that its expected value is constantly being increased. This can be through the acquisition of any form of assets that will increase the organization's value. ABC is in the healthcare sector, and it would be important for them to keep up with the latest healthcare advancements increasing the BVPS (Rappaport, 2006). Although they would be currently costly, in the long run, they would ensure ABC is a market leader in its industry as

The third way that ABC could use to maximize shareholder value would be to reduce the number of shareholders (Rappaport, 2006). By acquiring their shares back, they reduce the amount of outstanding stock. This would mean that the remaining shareholders see an increase in their EPS.

Conclusion

Ambulatory surgery, outpatient clinics, hospitals, and urgent care centers are all services provided by ABC Healthcare. Maria Gomez is acting as the founder as well as the president of the healthcare facility. In the finance department, all of the foregoing facilities are handled as a single entity. All of the firm's financial data is treated in its own financial statements, and this financial statement then aids in the preparation of a consolidated account in the future. The company's revenue is primarily derived from its business dealings with the general population. It indicates that investors are more concerned about investing in the company, as well as the value of the company in the market is high. In addition to the analytical findings, it is evident that ABC may have to take some drastic steps so as to ensure that its shareholders are happy. Short-term discomfort and negativity will ultimately benefit ABC. This would be advisable by reducing the outstanding stock, reselling the stock again at a higher value, and limiting the number of shareholders so as to not have the profits spread too thin (Rappaport, 2006).

AREAS, B. (2018). Financial analysis. growth, 30, 10.